The decision follows the receipt of advance purchase orders for its algae-based Omega-3 oils worth $6 million in 2024, which would account for the full production capacity of Aker BioMarine's algal oil factory in Houston.
The Norwegian company, which was founded to produce products made from wild-caught Antarctic krill, says that it has built a dedicated algal oil production line in the Texan city, which is now on-stream.
"This is a great example of how we can use the skills and expertise in our Houston production facility as a platform to grow into new product lines. We have great synergies from both our existing equipment and teams, which enables expansion into algae oil with limited additional costs. The move into algae oil is exciting, especially given the current pressure on fish oil prices," said Matts Johansen, CEO of Aker BioMarine, in a stock exchange announcement.
As the order would account for the company’s total annual production capacity for algae oil they have consequently taken a strategic decision to increase production capacity around fivefold. According to Aker, tThis expansion will require limited investments, as the company will utilise existing infrastructure in Houston. Estimated time to completion is 12-18 months.
According to GOED Ingredient Market Report 2023, the total market for algae-based omega-3 oil was $274 million (5,327 tonnes), of which dietary supplements accounted for $82 million (1,213 tonnes), in 2022. The average growth rate in volume until 2025 is expected to be 10 percent.